Austal to build its second LCS for Navy

Saturday, May 02, 2009

By KAIJA WILKINSON

Business Reporter

Austal USA learned Friday that it will build its second
littoral combat ship for the U.S. Navy.

Work on the ship, to be named Coronado, will start
immediately, said General Dynamics Corp. spokesman Rob
Doolittle. Austal is part of a General Dynamics team
competing to build the fast, highly maneuverable ships.

The Coronado will be the

Navy's fourth LCS and the second built by Austal. It is
scheduled for delivery to the Navy in May 2012, General
Dynamics said.

The first Austal-built LCS, Independence, is in the final
stages of construction and testing, according to General
Dynamics. Both ships feature an innovative, high-speed
trimaran design.

It was unclear Friday if the

Navy's contract award means that 15 Austal employees
laid off last month will be asked to return. Austal
spokesman Bill Pfister said the company does not comment on
contracts until it notifies the Austalian Stock Exchange,
where shares of Austal's parent company, Austal Ltd.,
are traded. The exchange was closed Friday afternoon.

A rival team led by Lockheed Martin Corp. built the first
LCS, Freedom, which was delivered to the Navy in September.
That ship, as well as Independence, experienced significant
cost overruns, causing the Navy to change the way it buys
the ships.

The Navy last fall asked the teams to submit fixed-price
bids for five vessels.

Citing the competition, the Navy is not releasing contract
amounts until next year. The first ships, initially
projected in the $220 million range, are each thought to
have cost about

$500 million.

Austal, which in November won a potential $1.6 billion naval
contract to build up to 10 high-speed military transport
ships, has been ramping up employment and is building a $170
million, assembly line-style facility with the help of more
than

$24 million in incentives and $33 million in Hurricane Katrina recovery money from the federal government....

Austal to build its second LCS for Navy

Saturday, May 02, 2009

By KAIJA WILKINSON

Business Reporter

Austal USA learned Friday that it will build its second
littoral combat ship for the U.S. Navy.

Work on the ship, to be named Coronado, will start
immediately, said General Dynamics Corp. spokesman Rob
Doolittle. Austal is part of a General Dynamics team
competing to build the fast, highly maneuverable ships.

The Coronado will be the

Navy's fourth LCS and the second built by Austal. It is
scheduled for delivery to the Navy in May 2012, General
Dynamics said.

The first Austal-built LCS, Independence, is in the final
stages of construction and testing, according to General
Dynamics. Both ships feature an innovative, high-speed
trimaran design.

It was unclear Friday if the

Navy's contract award means that 15 Austal employees
laid off last month will be asked to return. Austal
spokesman Bill Pfister said the company does not comment on
contracts until it notifies the Austalian Stock Exchange,
where shares of Austal's parent company, Austal Ltd.,
are traded. The exchange was closed Friday afternoon.

A rival team led by Lockheed Martin Corp. built the first
LCS, Freedom, which was delivered to the Navy in September.
That ship, as well as Independence, experienced significant
cost overruns, causing the Navy to change the way it buys
the ships.

The Navy last fall asked the teams to submit fixed-price
bids for five vessels.

Citing the competition, the Navy is not releasing contract
amounts until next year. The first ships, initially
projected in the $220 million range, are each thought to
have cost about

$500 million.

Austal, which in November won a potential $1.6 billion naval
contract to build up to 10 high-speed military transport
ships, has been ramping up employment and is building a $170
million, assembly line-style facility with the help of more
than

$24 million in incentives and $33 million in Hurricane Katrina recovery money from the federal government....